Life insurance has been around a long time, and just about everyone knows what it is and what it does. Yet, there are still a lot of widely-held misconceptions about life insurance. For example, many people don't buy a life insurance policy because they grossly overestimate how much it's going to cost. Once they get the facts, people are surprised to learn life insurance is very affordable for most Americans.

You may spend a great deal of time making plans for the important things in life - spending time with loved ones, buying a dream car, starting a business, buying your first home, having a baby, etc. And while health, homeowner's and car insurance are requirements of state and local governments or financial institutions, these policies are a way to prepare for unfortunate "worst of times" scenarios.

Insurance can protect you and your loved ones from costs you couldn't possibly pay on your own. If disaster would strike and leave your home, your health, or even your car destroyed, insurance would provide the needed funds to rebuild, replace, or repair what is needed (or to treat your medical situation for as long as is needed).

The Option of Life Insurance Life insurance, however, is not required for anyone to buy. It is left up to the individual to make decisions about the purchase as well as the type of insurance and optional coverages. Nearly half (44%) of Americans didn't have any life insurance in 2013, according to LifeHealthPro as cited in TapInto.

What will happen to your family and loved ones if you die without having life insurance in place? How will your spouse replace your income, send the kids to college, or prepare for retirement without your help? For many households, both incomes are required to make ends meet. Life insurance is a tool that can provide that second income if the worst (your death) should happen.

How To Prepare for the Worst It is also important to have a will that specifies who you want to get your assets if you pass away. You may think it's obvious that your spouse or your kids will inherit your assets, but it's important that you have your financials set up properly in order for this to happen as you wish. Talking to a financial advisor or estate planner will help you get everything in order so that your wishes will be carried out.

If you’re a millennial, you know what it’s like to have technology at your fingertips— literally. This is the generation that has grown up plugged into the Internet, and many of you have spent the majority of your lives in front of a computer.

Yet IRL (in real life), despite being the most technological-savvy generation, you’re also the most underinsured. Roughly 25% of all Gen Yers (18-29) don’t have health insurance. So it’s not surprising that millennials are also less likely to have life insurance. In today’s blog post, we’re going to discuss the reasons why millennials should invest in life insurance, and three ways you can maximize your policies.

1) Buy your own insurance: If you’re thinking that you don’t need additional life insurance because you have a policy through your job, that’s a costly assumption to make. What happens if you get laid off or fired? Once your position dissolves, so does your coverage, leaving you vulnerable.

We know that since you’re young, you may feel invincible at times (we were young at one time, too), but accidents and unforeseen bad fortune don’t discriminate when it comes to age.

Another advantage of your youth, besides having more energy and bouncing back quicker from a hangover, is the lower rates. The younger you are, the less of a health risk you are, which means lower rates.